GERMAN POLITICAL CRISIS.

New Zealand Herald, Volume LXVI, Issue 20375, 2 October 1929, Page 11

GERMAN POLITICAL CRISIS.

UNEMPLOYMENT INSURANCE

LARGE DEFICIT IN FUND.

GOVERNMENT'S PROPOSITION,

COMPROMISE NOT SUPPORTED.

Australian arid N.Z. Press Association. (Received October 1, 10.35 p.m.) LONDON, Oct. 1. Tlio Berlin correspondent of the Morning Post says an atmosphere of crisis Mirrounds the reopening of the Reichstag today. A cordon of police is barring the approaches owing to the fear of hii assault by Communist shock troops. The big issue of the session is unemployment insurance. This is in a serious position owing to a deficit of £14,000,000. The deficit lias arisen out of the fact that tlio average unemployment now i 3 1,100,000, whereas it should only bo 700.000. As there is an urgent necessity to make the fund solvent the Government proposes to find ball tlio deficit and to leave it to the employers and workers to share the other £7,000,000 by increasing their contributions. This proposed compromise was heavily defeated in committee yesterday, only the Socialists approving it. The situation of the Government, therefore, is precarious.

SCHEME THAT FAILED. B(G LOAN FOR GERMANY. SWEDE'S CONDITIONAL OFFER. Times Cable. LONDON, Sept. 30. The Berlin correspondent of the Times says a prematura disclosure by Berlin newspapers, owing to what is described as an indiscretion, probably killed a scheme under which the Minister of Finance, Dr. Hilferding, had hoped to strengthen Germany's credit. This was to have been done by accepting an offer from the Swedish match king, Ivan Kreuger, of a loan of £30,000,000 at a low rate of interest in return for a mutch monopoly. It is reported that the terms of the negotiations included an embargo on foreign matches. This was aimed against Russia, which is capturing the market in spite of the high duties and the right of the Swedish trust to regulate the prices. v Kreuger has secured monopolies in the greater part of Europo by offering aid in times of financial stringency. The disclosure has provoked an outcry light throughout Germany against foreign control.